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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ekam Leasing & Finance Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -178.53%.
As of today (2026-07-17), Ekam Leasing & Finance Co's WACC % is 9.32%. Ekam Leasing & Finance Co's ROIC % is -45.21% (calculated using TTM income statement data).
Ekam Leasing & Finance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ekam Leasing & Finance Co (BOM:530581) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Ekam Leasing & Finance Co's WACC % is 9.32%. Ekam Leasing & Finance Co's ROIC % is -45.21% (calculated using TTM income statement data).
Ekam Leasing & Finance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Ekam Leasing & Finance Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ekam Leasing & Finance Co ROIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Ekam Leasing & Finance Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Ekam Leasing & Finance Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ekam Leasing & Finance Co (BOM:530581) has a ROIC % of -178.53% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ekam Leasing & Finance Co and its competitors.
Is Ekam Leasing & Finance Co's ROIC % too high?
Ekam Leasing & Finance Co's current ROIC % is -178.53%. Overall, Ekam Leasing & Finance Co has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ekam Leasing & Finance Co's ROIC % compare to V and MA?
Ekam Leasing & Finance Co's ROIC % of -178.53% can be compared against companies in the Credit Services industry. The industry median ROIC % is 2.03. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Credit Services company?
The median ROIC % among Credit Services companies is 2.03, based on 418 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ekam Leasing & Finance Co and its competitors. For the Credit Services industry, the median ROIC % is 2.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ekam Leasing & Finance Co's current ROIC % is -178.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ekam Leasing & Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Ekam Leasing & Finance Co (BOM:530581) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹0.99, compared to a current price of ₹8.00 — trading 708.1% above its estimated fair value. The current ROIC % is -178.53%. Ekam Leasing & Finance Co's overall GF Score™ is 35/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Ekam Leasing & Finance Co (BOM:530581), the current ROIC % is -178.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ekam Leasing & Finance Co (BOM:530581) Overvalued in 2026?
Based on GuruFocus' analysis, Ekam Leasing & Finance Co stock appears to be overvalued.
The current stock price of ₹8.00 is trading 708.1% above its estimated GF Value™ of ₹0.99.
GuruFocus considers Ekam Leasing & Finance Co to be Significantly Overvalued.
Key valuation signals for BOM:530581:
ROIC %: -178.53%
GF Value™: ₹0.99 vs. price of ₹8.00 (708.1% above fair value)
No single metric tells the full story. See the BOM:530581 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ekam Leasing & Finance Co Ltd is an India-based non-banking financial company. The company generates all of its revenue from Interest Income. The company mainly operates and generates revenue in India.
35GF Score
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